Many buyers are affording homes by using smaller deposits, government grants, parental support, or buying in more affordable suburbs. While property prices are high, there are still ways to enter the market; it just may require a different strategy.
How are people still managing to buy homes?
Despite rising prices, here are the most common ways buyers are making it work:
👨‍👩‍👧‍👦 Family help
- Parental gifts or early inheritance
- Guarantor loans, where parents use their equity to help secure the loan
🏛️ Government support
- First Home Guarantee – buy with as little as 5% deposit, no LMI
- Stamp duty exemptions or concessions for first home buyers
- Shared equity schemes in some states (e.g. VIC, NSW, WA)
🏠Buying differently
- Rentvesting – buy in a cheaper suburb or city, rent where you want to live
- Buying with a partner or sibling to share costs
- Regional purchases in fast-growing, affordable areas
- Smaller properties like units or townhouses to get started
Is it still possible to buy a home?
Yes — but most buyers need to adjust their expectations. That might mean:
- Looking outside capital cities
- Starting with a unit instead of a house
- Buying an investment property first and living elsewhere
- Saving a smaller deposit and using government schemes
The key is to focus on what’s achievable now, not a dream home that’s out of reach.
What is rentvesting, and does it work?
Rentvesting is when you buy a property you can afford (usually in a more affordable area) but rent elsewhere, often in a location that better suits your lifestyle.
âś… Pros of rentvesting:
- Get into the market sooner without waiting to afford your dream suburb
- Potential tax benefits if the property is positively or negatively geared
- Live where you want, not just where you can afford to buy
- Build equity over time, which can help you upgrade later
❌ Cons of rentvesting:
- You’ll still be paying rent (on top of mortgage repayments)
- You miss out on some first home buyer benefits (e.g. stamp duty exemption may not apply if you’re not living in the property)
- Two sets of expenses: maintenance, rent, and loan repayments
- May be emotionally more challenging for those who want to feel “settled” in their own home
Rentvesting isn’t for everyone, but it’s a brilliant stepping stone into the property market for many.
First Home Guarantee vs Shared Equity: What’s the difference?
Both government programs aim to help first-home buyers enter the market sooner, but they work differently:
🛡️ First Home Guarantee (FHBG)
- Offered by the Federal Government
- Lets you buy with as little as 5% deposit
- No Lenders Mortgage Insurance (LMI)
- You own 100% of the property
- Limited spots, so you need to apply through a participating lender
- You must live in the property (not for investment use)
🏠Shared Equity Schemes
- Offered by some state governments (e.g. NSW, VIC, WA)
- The government contributes a portion of the purchase price (e.g. 20–30%)
- You repay their share later (e.g. when selling or refinancing)
- Smaller deposit needed, and no LMI
- Can lower your repayments significantly
- Some schemes allow key workers or single parents to apply with even lower income thresholds
What if I can’t afford anything right now?
If buying today isn’t possible, here’s what you can do to get closer:
- Speak to a mortgage broker – find out your borrowing power and what help you might be eligible for
- Set a clear savings plan – even 5% can be enough with the proper support
- Explore regional or outer-metro areas where prices are lower
- Improve your credit score to qualify for better loans
Final thought: You can get in, but the path might look different
Plenty of buyers aren’t buying their dream home first. They’re just getting a foot in the door and building from there. With the right plan and support, buying property in Australia is still possible.
Need guidance?
At Moove, we help first-home buyers and investors explore innovative strategies like rentvesting, government grants, and buying off-market. Book a free strategy session to get clarity on your next move.
